A Guide to Bank Accounts

Your accountant or financial advisor may have told you about the importance of having your own bank account, but do you know all the ins and outs of these common financial accounts? Personal bank accounts have several benefits, from providing a safe place to put away money to potentially helping you grow your savings and more. However, not all bank accounts are the same. Before you sign up for one, you should ask some key questions and determine what you want out of your account. Here’s a quick guide to understanding bank accounts. 

Many Accounts Offer Perks Beyond Saving Money 

Though bank accounts are well known as a place to stash cash for the future, many accounts come with other helpful perks and advantages. For example, your bank might offer: 

• Cheque cashing 

• The ability to access or qualify for certain loans 

• Fraud protection and detection 

• Digital banking options, sometimes including phone apps 

• Paycheque direct depositing 

Research Potential Accounts for Safety and Reliability 

Before you apply for an account, take time to research your options and thoroughly vet the possibilities for safety and reliability. Ask yourself essential questions such as: 

• Does this bank take reasonable security measures with your account? 

• Is the bank reputable? 

• Do you see yourself keeping your money there in the long term as a result of the bank’s reliability? 

• Does the account come with the additional perks that you want and/or need? 

Understand the Basics Before You Open Your First Account 

When you’re finally ready to apply for a bank account, it’s time to start dealing with the logistics. The application process will likely vary based on the bank and the type of account you want to open, but there are several steps these processes typically have in common. For instance: 

• You will likely need a government-issued ID to open your first account 

• Some accounts may require an initial minimum deposit or minimum amount maintained in the account at all times 

• You may need to open two accounts: a chequing account for spending money and depositing your paycheques, and a savings account for putting away cash for later 

• Consider whether you would prefer to apply in person or open your account online 

From providing a safe place to stow away cash to potentially offering dividend payments to help grow your money, personal bank accounts have many perks, making them a key financial tool. However, before you sign up for your first account, it’s important to understand what you want out of a bank account and to research all your options. With this quick guide, you can gain a deeper understanding of bank accounts and find the perfect one for your financial future.